Digitalization, financing constraints, and firm performance: Evidence from Vietnam

Abstract

In today's global landscape, nations are strategically embracing digital paradigms, compelling firms to leverage digital technologies to fortify their competitive edge. By examining the dynamic relationship between digital transformation and firm performance within the Vietnamese business landscape, this study offers significant insights into the prevailing digital environment and its associated adoption challenges. Through empirical analysis and regression modeling, it is demonstrated that digital transformation significantly enhances firm performance by reducing costs and intensifying research and development efforts. Leveraging data from 274 listed companies on the Vietnam Stock Exchange spanning from 2013 to 2022, comprehensive analyses uncover the positive correlation between digital transformation and improved performance metrics. The findings not only contribute to theoretical frameworks, particularly the Resource Based View theory, but also offer actionable recommendations to empower firms in navigating the digital landscape effectively